Can the superintendent take over an insurer’s operations?
The Superintendent, as receiver, may seek an order from the New York State Supreme Court allowing the Superintendent to take over a domestic insurer's operations if certain circumstances exist that affect an insurer’s financial stability.
How often does the Commissioner examine the affairs of authorized insurers?
(1) The commissioner shall examine the affairs, transactions, accounts, records, documents, and assets of each authorized insurer as often as he or she deems advisable. The commissioner shall so examine each insurer holding a certificate of authority or certificate of registration not less frequently than every five years.
What happens after the hearing of the superintendent of insurance?
After the hearing, the Superintendent decides to continue the order. The agent wants to appeal this decision. Which of the following is true? The superintendent of insurance is charged by the insurance code to regulate the business of insurance in the state.
How often should an insurance company be examined?
The commissioner shall so examine each insurer holding a certificate of authority or certificate of registration not less frequently than every five years. Examination of an alien insurer may be limited to its insurance transactions in the United States.
How often are domestic insurers examined?
At a minimum, the department shall examine a carrier not less frequently than once every five years. (b) The commissioner shall adopt rules governing the frequency of examinations of carriers that have been organized or incorporated for less than five years.
When may the insurance commissioner examine the books and records of an insurer?
(a) The commissioner, whenever he or she deems necessary or whenever he or she is requested by verified petition, signed by 25 persons interested as shareholders, policyholders, or creditors of any admitted insurer showing that the insurer is insolvent under this code, or upon information that any insurer has violated ...
What is the maximum civil penalty for violating the superintendent cease and desist order?
if the superintendent finds that the licensee is in violation of an unfair method of competition, unfair claim, or unfair act or practice, the superintendent will issue this. this means the person must stop doing whatever they're doing. this person is liable for penalties up to $5,000.
How often must the commissioner submit reports about insurance matters in Georgia?
-The Commissioner issues to qualified insurers certificates of authority, which permit them to transact insurance business in Georgia. -An insurer must file and publish its annual report each year by March 1 in order to renew its certificate of authority.
How many years must a US insurance company maintain all necessary records?
six yearsThe regulation requires records to be kept for at least six years after their filing date. advised that insurance policy records for employees be kept at least six years to ensure federal compliance. Retaining the right documents can make life much easier if a claim is filed.
What is the maximum amount the commissioner can fine an insurer for each violation?
(d) Any insurer who violates this article with a frequency as to indicate a general business practice or commits a knowing violation of this article, is liable for an administrative penalty of no less than thirty thousand dollars ($30,000) and no more than three hundred thousand dollars ($300,000) for each violation.
What is the maximum amount the commissioner can fine an insurer that violates a cease and desist order?
fifty thousand dollarsThe commissioner may issue an order requiring the producer or insurer to cease and desist from engaging in the conduct resulting in the violation and may assess a civil penalty of not more than fifty thousand dollars against the producer or insurer.
Which of the following authorities is responsible for assessing the financial ability of insurers?
Five independent agencies—A.M. Best, Fitch, Kroll Bond Rating Agency (KBRA), Moody's and Standard & Poor's—rate the financial strength of insurance companies.
Who can take over an insurer's operations in New York?
The Superintendent, as receiver, may seek an order from the New York State Supreme Court allowing the Superintendent to take over a domestic insurer's operations if certain circumstances exist that affect an insurer’s financial stability.
What was the first state to provide consumers with a measure of protection against the insolvency of a domestic life
In 1941, New York became the first state in the country to provide consumers with a measure of protection against the insolvency of a domestic life insurer. In 1985, the Life Insurance Company Guaranty Corporation of New York (the “Guaranty Fund”) was established to include licensed non-domestic life insurers.
How is the guaranty fund funded?
The Guaranty Fund is funded through assessments against member insurers made after a member insurer is declared insolvent by a court of law. These funds are used to pay valid claims, as well as administrative expenses.
What happens if a contract does not guarantee annuity benefits?
If a contract does not guarantee annuity benefits with respect to any specific individual identified in the contract, then the Guaranty Fund will provide coverage for the total invested with the insurer, up to $1 million. If the contract guarantees annuity benefits with respect to specific individuals identified in the contract, ...
Can a life insurer be placed in rehabilitation in another state?
If a life insurer is domiciled in another state and is placed in rehabilitation or liquidation in that state, then the Superintendent may seek a court order allowing the Superintendent to take control of the insurer’s assets in New York.
Does the guaranty fund cover insurance?
Although the Guaranty Fund provides some protection, there are limitations on coverage, so do not ignore an insurer’s financial condition and assume that you will be fully protected if the insurer fails to meet its obligations.